Fees & payments

Local area marketing (LAM)

Marketing a franchisee does, and often must spend on, for their own outlet and territory, separate from the national marketing fund.

What it means

Many agreements distinguish national marketing (funded by the marketing levy) from local area marketing, the promotion of your specific outlet. Franchisors frequently set a minimum LAM spend franchisees must make each year.

LAM is both an obligation and an opportunity: it is money you control to drive foot traffic to your site, unlike the national fund, which you contribute to but do not direct.

In practice

Check whether the agreement mandates a minimum local marketing spend and what qualifies. Budget for it, and treat it as your lever to grow local sales beyond what national campaigns deliver.

A real example

A pizza franchisee must spend at least 2% of sales on local area marketing, which she uses for letterbox drops and local sponsorships, on top of the 2% national marketing levy.

Local area marketing (LAM), FAQs

What is the difference between the marketing fund and local area marketing?

The marketing fund (national) is a pooled levy the franchisor directs. Local area marketing is spend you make and control for your own outlet, often subject to a required minimum.

Is local area marketing compulsory?

Frequently yes, agreements often set a minimum annual LAM spend. Check what counts and budget for it separately from the marketing levy.

See the full franchise glossary, the Fee Index or our buyer guides.